Economics Questions Glendale Community College Econ 101 Winter 2022 Test 3 Question 7

Suppose that the industry continues to operate under conditions of perfect competition and that the cost curves do not shift, in the long run this perfectly competitive firm will produce:

a.  1000 units because this is where profits are maximized

b. 800 units because entry from new firms will push down the market price to $50

c. 800 units because this is where the fixed costs are minimized

d. 800 units because the exiting of firms will push down the market price to $50